Latest news with #DGXB300
Yahoo
3 days ago
- Business
- Yahoo
Intel Rises 7.9% in the Past Year: Should You Buy the Stock?
Intel Corporation INTC has increased 7.9% over the past year compared with the industry's growth of 48%. It has underperformed compared to the Zacks Computer & Technology sector and the S&P 500. Image Source: Zacks Investment Research The company has also underperformed its competitors like Advanced Micro Devices AMD but outperformed Qualcomm Incorporated QCOM. AMD has surged 31.2%, while Qualcomm has decreased 7.3% during this period. INTC's Key Growth Drivers Intel's client computing group is benefiting from solid demand for AI PCs. AI PCs support seamless AI native software integration, optimize performance of AI native applications leveraging superior central processing unit, graphics processing unit and the new neural processing unit capabilities. Moreover, AI PC's on-device AI processing support a wide range of cutting-edge tools, simplifying workflow and boosting efficiency. Hence, organizations across industries are rushing to incorporate AI PCs across their operations to drive productivity and support highly demanding workloads. With the leading-edge AI chips offering, like Intel Core Ultra processors, Intel is well positioned to gain from this AI PC boom. The company aims to ship 100 million AI PCs powered by its chips in 2025. Intel is witnessing strong momentum in the Asia-Pacific region, where collaboration with leading manufacturers such as Lenovo, ASUS and Huawei is driving growth. Growing market traction of XEON 6 processors is a major growth driver in the Data Center and AI Group. The company recently introduced three new Xeon 6 CPUs with Performance-cores engineered to support GPU-accelerated AI systems. Intel's Xeon 6776P was selected by NVIDIA as a host processor for its cutting-edge DGX B300 company is steadily advancing the development of its next-gen client computing processor, Panther Lake, built on Intel 18A. The processor is scheduled to launch in late 2025. Such development highlights Intel's growing prowess in AI and management's strong focus on innovation. This bodes well for long-term stringent cost-cutting efficiency and strategic divestiture to optimize portfolio and business operations are commendable. The company recently divested a part of Mobileye, raising $922 million in capital, and it is also set to sell the Altera business. These initiatives will streamline operations and improve its balance sheet. Major Challenges for Intel Intel's growth prospects are impacted by intense competition from other prominent players. Growing demand for AMD's Ryzen is impacting net sales in Intel's Client Computing Group. Qualcomm has also made inroads in the AI PC space with its Snapdragon X Elite processor. This can pose a significant challenge to Intel's AI PC strategy in the near term. Its Foundry business is affected by fierce competition from TSMC. Per our estimate, Intel's client computing group is expected to generate $30.42 billion in revenues, indicating an 8.8% year-over-year decline, while revenues from the foundry business are expected to remain flat year over generates a significant portion of its revenue from China. China accounted for more than 29% of Intel's total revenues in 2024, making it the single largest market for the company. Tariff-related uncertainties amid high geopolitical tension between the United States and China remain a major concern. The U.S. Government's new 90-day tariff truce for China may provide temporary relief, but it is to be seen whether this truce can be sustained in the long run or not. Intel is growing through a structural and operational realignment process. The high restructuring and impairment charges incurred during the process are weighing on margins. Image Source: Zacks Investment Research Estimate Revision Trend of INTC Earnings estimates for Intel for 2025 have moved down 48.28% to 15 cents over the past 60 days, while the same for 2026 has declined 10.53% to 68 cents. The negative estimate revision depicts bearish sentiments for the stock. Image Source: Zacks Investment Research Key Valuation Metric for Intel From a valuation standpoint, Intel appears to be relatively cheaper than the industry and below its mean. Going by the price/sales ratio, the company shares currently trade at 1.79 forward sales, lower than 16.28 for the industry. Image Source: Zacks Investment Research End Note Intel is taking various initiatives to gain a firmer footing in the expansive AI sector. Major PC OEMs, such as ASUS, Dell, HP and Lenovo, have already opted to deploy Intel AI chips. The company's XEON 6 is also gaining traction across industries. Companies like AT&T, Verizon, Samsung, and Ericsson are leveraging Xeon 6 for network transformation and AI acceleration. Growing demand for Intel AI chips bodes well for long-term growth. The company's strong focus on innovation is a tailwind. Strategic divestitures, cost-cutting initiatives to optimize its portfolio and streamline operations are positive the company is still playing a catch-up game with AMD in the AI front. Qualcomm has also emerged as a strong player in the AI PC domain. These factors will hinder Intel's growth prospects. Downward estimate revision highlights dwindling investors' confidence. Despite growing investment in advanced chip development, regaining a competitive edge over rivals appears to be a challenging endeavor for Intel. The company currently carries a Zacks Rank 3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Intel Corporation (INTC) : Free Stock Analysis Report QUALCOMM Incorporated (QCOM) : Free Stock Analysis Report Advanced Micro Devices, Inc. (AMD) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Yahoo
26-05-2025
- Business
- Yahoo
Intel's Xeon 6 CPU Selected for Nvidia's DGX B300 AI System
On Thursday, Intel Corp. (NASDAQ:INTC) announced its latest central processing units/CPUs for servers, with one of them securing a spot in NVIDIA Corp's (NASDAQ:NVDA) DGX B300 AI computer. Intel also unveiled three new additions to its Intel Xeon 6 series of CPUs, specifically designed to manage advanced graphics processing unit/GPU-powered AI systems. A technician soldering components for a semiconductor board. One of these new processors will serve as the host CPU for NVIDIA's DGX B300, which is the AI leader's newest generation of AI-accelerated systems. Intel's Xeon 6 processors incorporate a technology called Priority Core Turbo, which dynamically adjusts workloads between high-priority compute cores and low-priority cores to maximize efficiency. Karin Eibschitz Segal, corporate vice president and interim general manager of Intel's Data Center Group, expressed excitement about deepening collaboration with NVIDIA to deliver high-performing AI systems and accelerate AI adoption across various industries. Intel Corp. (NASDAQ:INTC) designs, develops, manufactures, markets, and sells computing and related products and services worldwide. While we acknowledge the potential of INTC to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than INTC and that has 100x upside potential, check out our report about the cheapest AI stock. READ NEXT: and . Disclosure: None. This article is originally published at Insider Monkey. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
22-05-2025
- Business
- Yahoo
Intel Scores Slot In Nvidia Data Center AI System
One of Intel's latest central processing units for servers landed a spot in Nvidia's DGX B300 AI computer. But Intel stock wavered Thursday.
